Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Solution and Analysis
Intro
Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing info and interaction services. Major service segments of the business include; books, regulars, consultancy and distribution. The business has a vast item portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help has actually ended up being a specialized information provider and a big extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in basic and Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Solution in specific. These elements include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis has particular strengths that can be made use of to lower the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis in the publishing market i.e. 60 years permits the business to provide high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position allows the business to think about several advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing because 2008, impacting Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Solution also, however the growth could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company could also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
Hazards
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can get a strong customer base by using specific strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing firms in the industry together with existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total incomes of Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of CMP is growing and the company is rather effective in bring in a large number of consumers at a potential price.
Together with it, the 2nd graph which shows the yearly growth in the Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis overall possessions, shows that the company is rather efficient in adding value to its possessions through its profits. The development in properties reveals that the total value of the company is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of total revenues of the business. Huge part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the various external forces affecting the performance of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the overall GDP growth of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading informative materials etc. China has the highest population on the planet with a high population growth, showing the increasing number of consumers of the Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Solution. Nevertheless, the consumer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation together with the increase of digital publishing might lower the demand for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract new entrants to the publishing market. However, the existence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the files provided in the digital libraries on specific websites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Splunk And Venture Capital Investing In Enterprise Technology Part A Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business require an instant option to avoid the declining industry development. The business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company must first collects the information associated with the consumer demand, the prospective markets, the federal government policies and the information related to the competitors presented in the market. After that, the business should choose one prospective section for its preliminary offering. It must collect research that how it might separate its digital publishing from the existing rivals' items. The steps above the business need to go for the preliminary offering. The business should go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a danger to the company's long term existence, but the situation can be managed by considering an advancement plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the danger of failure for entryway in the new markets.
